Categories: Investor Definitions

BOILER ROOM SCHEMES

Boiler room schemes are large-scale operations designed to lure in as many investors to an investment scam as possible, often using high-pressure sales tactics.   Boiler room scheme operators may cold call investors or solicit investors through emails, text messages, social media, and other means.  Beware of boiler room scheme tactics, including:

  • Aggressive Sales Tactics or Threats.  Fraudsters may use aggressive sales tactics or even threats (for example, threatening to file a lien against your property) to swindle you.
  • Pressure to Buy Quickly.  No reputable investment professional should push you to make an immediate decision about an investment.
  • Unsolicited Offers.  Be wary of any investment offer you didn’t ask for, especially if you don’t know the sender.
  • Promises of High Returns with Little or No Risk.   Every investment carries some degree of risk, and the potential for greater returns usually comes with greater risk.  If it sounds too good to be true, it is.

Boiler room scheme tactics may be used to perpetrate microcap fraudbinary options fraudadvance fee fraud, and other investment scams.  Resist the pressure to invest quickly and take the time you need to investigate thoroughly before sending money or signing any agreements.

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